Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Europe

Published by	Finaccord Ltd.
Published	October, 2008	Product code	76404
Content info	120 Pages
Price	US $ 3292 PDF by E-mail (Single Office license) US $ 3950.40 PDF by E-mail (License for multi-office in one country) US $ 4938 PDF by E-mail (License for multi-office within 2-10 countries) US $ 6584 PDF by E-mail (Global License - unlimited users)

Introduction
Related Reports

Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Europe published by Finaccord Ltd. in October, 2008. This report consists of 120 Pages and the price starts from US $ 3292.

Introduction

Abstract

Finaccord' s report titled Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Europe offers unique and detailed insights into the behaviour of cardholders in the context of card protection insurance. Based on a primary survey of over 5,000 consumers in France, Germany, Italy, Spain and the UK carried out in July and August 2008, the research provides valuable data describing the extent to which consumers with debit and / or credit cards take out card protection insurance and clarifying the proportion of uninsured cardholders who value the benefits of the insurance but have simply not got round to acquiring cover.

In addition to calculating the percentage of cardholders possessing card protection insurance in each country, the investigation also analyses the types of policy that they hold (i.e. insurance that they are paying for separately or free cover), the range of benefits that they believe that they derive from their insurance, which distribution channel and interface they use to take out paid-for card protection insurance and whether they buy cover within a week or a month of acquiring a given payment card or at a later stage.

Finally, the report measures the degree to which cardholders are satisfied with their insurance, whether they find it expensive and if they are likely to discontinue it the next time that it comes up for renewal. Key features of this report include: - robust analyses showing the percentage of cardholders that acquire card protection insurance in each country, the potential for this proportion to grow further and how cross-selling rates differ between debit cards and credit cards; - unique data describing the proportion of cardholders who understand that the insurance that they possess provides them with particular benefits and services; - accurate statistics illustrating the extent to which sales of card protection insurance are made through remote interfaces (i.e. Internet, telephone and post) in addition to through face-to-face contact; - reliable information displaying how quickly cardholders are inclined to purchase card protection insurance once they have acquired a payment card; - valuable insights into the reasons given by cardholders for not acquiring insurance (for example, because they have not had time, because it is too expensive, because they did not see the benefit).

0.0 EXECUTIVE SUMMARY

France shows that card protection insurance has great potential in Europe
Card protection insurance does not have a clear demographic customer base.
Spain offers the most immediate opportunity for increased sales
Growing sales of card protection insurance depends on offering consumers better value for money
If cards are not sold face-to-face, companies have to use other interfaces to promote insurance which can continue to sell card protection insurance more than a year after the card is acquired
Credit card issuers outsell debit card issuers for this form of insurance
The UK has the highest proportion of customers thinking of discontinuing card protection insurance

1.0 INTRODUCTION

Research rationale
Consumer research illustrates the differences between Europe' s five most populous markets
Finaccord
European consumer research
Card protection insurance
European market, partnership and bancassurance research

2.0 EUROPEAN OVERVIEW

Introduction
Percentage of respondents possessing any kind of payment card
Over 80% of consumers hold a payment card of one type or another
Percentage of cardholders in possession of card protection insurance
Most cardholders have no card protection insurance in Germany, Italy and the UK
The French card protection insurance market is by far the largest in Europe
Demographic analysis of card protection insurance suggests that it lacks a target audience
Attitudes towards card protection insurance of cardholders without cover
Most cardholders without cover think that it is too expensive or does not give them much benefit
Implied maximum penetration rate for card protection insurance
Latent demand in Spain makes this the market with the most relative scope for development
Risks covered by card protection insurance
Consumers are most aware of the basic, anti-fraud elements of card protection.
German consumers do not see other advantages to card protection insurance
Consumers in Italy value SMS messaging a feature of card protection insurance
Distribution interfaces and point in time for acquiring card protection insurance
Choice of interface does not determine card protection insurance take-up but it does affect when consumers take-out paid-for policies and that it is worthwhile actively promoting card protection insurance long after a card is acquired
Distribution channels used for paid-for card protection insurance
Credit card issuers outsell debit card issuers except in Germany - highlighting unrealised potential?
Attitudes towards insurance of cardholders with paid-for cover
Only a small minority of customers are likely to discontinue paid-for card protection insurance
Customer satisfaction with the cost of card protection insurance varies by age

3.0 FRANCE

Percentage of respondents possessing any kind of payment card
Payment cards are almost universal in France, with debit cards to the fore
Percentage of cardholders in possession of card protection insurance
The proportion of cardholders paying for card protection cover in France is comparatively high
Attitudes towards card protection insurance of cardholders without cover
Most of the cardholders who do not have card protection insurance see that it would be beneficial
Risks covered by card protection insurance
Anti-fraud protection is the benefit most commonly provided by card protection insurance
Distribution interfaces used for paid-for card protection insurance
Face-to-face sales dominate the distribution of card protection insurance.
Point in time chosen to acquire paid-for card protection insurance
Card protection insurance is sold most effectively face-to-face along with the payment card
Remote sales of card protection insurance can be made long after the original card is acquired
Distribution channels used for paid-for card protection insurance
Credit card issuers out-perform debit card issuers for sales of card protection insurance
Attitudes towards insurance of cardholders with paid-for cover
Very few customers are thinking of discontinuing paid-for cover although the 25-34 age group is most likely to find it expensive

4.0 GERMANY

Percentage of respondents possessing any kind of payment card
Over 80% of consumers hold a payment card in Germany
Percentage of cardholders in possession of card protection insurance
Few cardholders pay separately for card protection cover in Germany
Attitudes towards card protection insurance of cardholders without cover
Potential for growth is limited by scepticism about the value of card protection insurance.
Risks covered by card protection insurance
Anti-fraud protection is the benefit most commonly provided by card protection insurance
Distribution interfaces used for paid-for card protection insurance
Distribution of card protection insurance is evenly split between face-to-face and remote interfaces
Point in time chosen to acquire paid-for card protection insurance
Only a half of card protection insurance policies are sold at the same time as the card with many cards being distributed remotely
Distribution channels used for paid-for card protection insurance
There is no apparent difference in take-up of insurance by type of card held
Attitudes towards insurance of cardholders with paid-for cover
Customers who pay for separate card protection insurance may be few, but they are satisfied
Younger customers are more likely to view card protection insurance as expensive

5.0 ITALY

Percentage of respondents possessing any kind of payment card
Over 80% of consumers hold a payment card in Italy
Percentage of cardholders in possession of card protection insurance
Only a small minority of cardholders are paying separately for card protection insurance with cardholders in the lower- to middle-income and age bands most likely to pay separately
Attitudes towards card protection insurance of cardholders without cover
The research indicates that there is an opportunity to double the size of the Italian market
Risks covered by card protection insurance
SMS text messaging when a card is used is a widespread feature in Italy
Distribution interfaces used for paid-for card protection insurance
Distribution uses a blend of face-to-face, Internet and telephone
Point in time chosen to acquire paid-for card protection insurance
A half of card protection insurance policies are sold at the same time as the card because card distribution often occurs remotely rather than face-to-face
Distribution channels used for paid-for card protection insurance
Credit card issuers are slightly ahead of debit card issuers for upselling card protection insurance
Attitudes towards insurance of cardholders with paid-for cover
The majority of customers with card protection insurance are satisfied
Women with insurance are less convinced of the value of card protection insurance than men

6.0 SPAIN

Percentage of respondents possessing any kind of payment card
Payment cards are nearly universal amongst Spanish consumers.
Percentage of cardholders in possession of card protection insurance
Most cardholders have card protection insurance in Spain, but only a minority pay separately
Propensity to pay peaks in the middle and the upper ends of demographic segmentations
Attitudes towards card protection insurance of cardholders without cover
A substantial proportion of cardholders believe that card protection insurance would be valuable
Risks covered by card protection insurance
Anti-fraud protection is the benefit most commonly provided by card protection insurance
Distribution interfaces used for paid-for card protection insurance
Outbound telesales of card protection insurance appear to be highly successful in Spain
Point in time chosen to acquire paid-for card protection insurance
Nearly a fifth of card protection insurance is sold more than a year after the card was acquired
Card protection insurance is not often sold alongside a card when using remote interfaces
Distribution channels used for paid-for card protection insurance
Credit card issuers are more successful than debit card issuers at selling card protection insurance
Attitudes towards insurance of cardholders with paid-for cover
Customers who pay for separate card protection insurance may be few, but they are satisfied
Customers aged over 45 are more likely to view card protection insurance as good value

7.0 UNITED KINGDOM

Percentage of respondents possessing any kind of payment card
Most consumers carry both a debit card and a credit card
Percentage of cardholders in possession of card protection insurance
There remains considerable scope to increase insurance penetration in the UK
Propensity to hold paid-for card protection insurance does not vary greatly by demographic group
Attitudes towards card protection insurance of cardholders without cover
Most cardholders lacking card protection insurance seem unconvinced of its value
Risks covered by card protection insurance
Insured cardholders seem commonly aware of only two benefits beyond anti-fraud protection
Distribution interfaces used for paid-for card protection insurance
Face-to-face distribution is the least important interface in the UK, while postal sales are joint first
Point in time chosen to acquire paid-for card protection insurance
Most card protection insurance is sold after the card itself has been acquired
Card protection insurance is not often sold alongside a card when using remote interfaces
Distribution channels used for paid-for card protection insurance.
Credit card issuers outsell debit card issuers for card protection insurance
Attitudes towards insurance of cardholders with paid-for cover
The UK registers the highest level of dissatisfaction with card protection insurance
Wealthier consumers are less convinced that card protection insurance offers value for money

8.0 APPENDIX

Research sample
The research embraces a total of more than 5,000 respondents across five countries
Research structure

GRAPHICS / TABLES

Percentage of respondents in Europe possessing any kind of payment card, 2008
Percentage of respondents in Europe possessing any kind of payment card, 2008 (data)
Percentage of cardholders in Europe in possession of card protection insurance, 2008
Percentage of cardholders in Europe in possession of card protection insurance, 2008 (data)
Estimated size of card protection insurance market by revenue, Europe, 2007
Percentage of cardholders in Europe paying separately for card protection insurance by age, 2008
Percentage of cardholders in Europe paying separately for card protection insurance by annual household income, 2008
Percentage of cardholders in Europe paying separately for card protection insurance by age and annual household income, 2008 (data)
Attitudes to card protection insurance among cardholders without cover in Europe, 2008
Attitudes to card protection insurance among cardholders without cover in Europe, 2008 (data)
Implied maximum penetration rate for card protection insurance among cardholders in Europe, 2008
Risk coverage among insured cardholders in Europe, 2008
Services offered by card protection insurance other than dedicated telephone support and anti-fraud protection, Europe, 2008
Analysis of distribution interfaces used by consumers in Europe to take out paid-for card protection insurance, 2008
Analysis of distribution interfaces used by consumers in Europe to take out paid-for card protection insurance, 2008 (data)
Analysis of card protection insurance acquired at the same time as the payment card between face-to-face and remote interfaces, Europe, 2008
Analysis of point in time at which consumers in Europe took out paid-for card protection insurance, 2008
Analysis of point in time at which consumers in Europe took out paid-for card protection insurance, 2008 (data)
Distribution channels used to acquire paid-for card protection insurance in Europe, 2008
Attitudes towards card protection insurance of cardholders in Europe with paid-for cover, 2008
Attitudes towards card protection insurance of cardholders in Europe with paid-for cover, 2008 (data)
Cardholders who find paid-for card protection insurance to be important but expensive by age, Europe, 2008
Cardholders who find paid-for card protection insurance to be important but expensive by age, Europe, 2008 (data)
Percentage of respondents in France possessing any kind of payment card, 2008
Percentage of respondents in France possessing any kind of payment card, 2008 (data)
Percentage of cardholders in France in possession of card protection insurance, 2008 % of cardholders in France in possession of card protection insurance segmented by gender, age group and annual household income, 2008 (data)
Attitudes towards card protection insurance of cardholders in France without cover, 2008
Risk coverage among insured cardholders in France, 2008
Risk coverage among insured cardholders in France, 2008 (data)
Distribution interfaces used to acquire paid-for card protection insurance in France, 2008
Point in time chosen by cardholders in France to acquire paid-for card protection insurance, 2008
Frequency with which card protection insurance is sold at the same time as the card itself, face-to-face and remote interfaces, France 2008
Distribution channels used to acquire paid-for card protection insurance in France, 2008
Attitudes towards card protection insurance of cardholders in France with paid-for cover, 2008
Cardholders who find paid-for card protection insurance to be important but expensive by age, in France, 2008
Percentage of respondents in Germany possessing any kind of payment card, 2008
Percentage of respondents in Germany possessing any kind of payment card, 2008 (data)
Percentage of cardholders in Germany in possession of card protection insurance, 2008 % of cardholders in Germany in possession of card protection insurance segmented by gender, age group and annual household income, 2008 (data)
Attitudes towards card protection insurance of cardholders in Germany without cover, 2008
Risk coverage among insured cardholders in Germany, 2008
Risk coverage among insured cardholders in Germany, 2008 (data)
Distribution interfaces used to acquire paid-for card protection insurance in Germany, 2008
Point in time chosen by cardholders in Germany to acquire paid-for card protection insurance, 2008
Frequency with which card protection insurance is sold at the same time as the card itself, face-to-face and remote interfaces, Germany, 2008
Distribution channels used to acquire paid-for card protection insurance in Germany, 2008
Attitudes towards card protection insurance of cardholders in Germany with paid-for cover, 2008
Cardholders who find paid-for card protection insurance to be important but expensive by age, in Germany, 2008
Percentage of respondents in Italy possessing any kind of payment card, 2008
Percentage of respondents in Italy possessing any kind of payment card, 2008 (data)
Percentage of cardholders in Italy in possession of card protection insurance, 2008 % of cardholders in Italy in possession of card protection insurance segmented by gender, age group and annual household income, 2008 (data)
Attitudes towards card protection insurance of cardholders in Italy without cover, 2008
Risk coverage among insured cardholders in Italy, 2008
Risk coverage among insured cardholders in Italy, 2008 (data)
Distribution interfaces used to acquire paid-for card protection insurance in Italy, 2008
Point in time chosen by cardholders in Italy to acquire paid-for card protection insurance, 2008
Frequency with which card protection insurance is sold at the same time as the card itself, face-to-face and remote interfaces, Italy, 2008
Distribution channels used to acquire paid-for card protection insurance in Italy, 2008
Attitudes towards card protection insurance of cardholders in Italy with paid-for cover, 2008
Cardholders who find paid-for card protection insurance to be important but expensive by age, in Italy, 2008
Percentage of respondents in Spain possessing any kind of payment card, 2008
Percentage of respondents in Spain possessing any kind of payment card, 2008 (data)
Percentage of cardholders in Spain in possession of card protection insurance, 2008 % of cardholders in Spain in possession of card protection insurance segmented by gender, age group and annual household income, 2008 (data)
Attitudes towards card protection insurance of cardholders in Spain without cover, 2008
Risk coverage among insured cardholders in Spain, 2008
Risk coverage among insured cardholders in Spain, 2008 (data)
Distribution interfaces used to acquire paid-for card protection insurance in Spain, 2008
Point in time chosen by cardholders in Spain to acquire paid-for card protection insurance, 2008
Frequency with which card protection insurance is sold at the same time as the card itself, face-to-face and remote interfaces, Spain, 2008
Distribution channels used to acquire paid-for card protection insurance in Spain, 2008
Attitudes towards card protection insurance of cardholders in Spain with paid-for cover, 2008
Cardholders who find paid-for card protection insurance to be important but expensive by age, in Spain, 2008
Percentage of respondents in the UK possessing any kind of payment card, 2008
Percentage of respondents in the UK possessing any kind of payment card, 2008 (data)
Percentage of cardholders in the UK in possession of card protection insurance, 2008 % of cardholders in the UK in possession of card protection insurance segmented by gender, age group and annual household income, 2008 (data)
Attitudes towards card protection insurance of cardholders in the UK without cover, 2008
Risk coverage among insured cardholders in the UK, 2008
Risk coverage among insured cardholders in the UK, 2008 (data)
Distribution interfaces used to acquire paid-for card protection insurance in the UK, 2008
Point in time chosen by cardholders in the UK to acquire paid-for card protection insurance, 2008
Frequency with which card protection insurance is sold at the same time as the card itself, face-to-face and remote interfaces, UK, 2008
Distribution channels used to acquire paid-for card protection insurance in the UK, 2008
Attitudes towards card protection insurance of cardholders in the UK with paid-for cover, 2008
Cardholders who find paid-for card protection insurance to be important but expensive by age, in the UK, 2008
Sample breakdown in Europe by age group
Sample breakdown in Europe by annual household income band